Improve Your Credit ScoreCheck your credit reportChecking your own credit report will not adversely affect your scores and it will give you the information needed to understand what improvements may be necessary. There are several on-line services that will assist you in pulling your own credit. Pay on timeDelinquent payments negatively impact scores. Keep balances lowHigh outstanding debt, such as maxed out credit cards, lower scores. You should pay down the debt instead of moving it around. Having multiple accounts with smaller balances vs. a single account with one large balance can also lower scores. Use caution when opening accountsThe longer the average account age is on a report, then the higher the credit score will be. Therefore, having several new accounts can adversely affect credit. Use caution when closing accountsA closed account will still show up on a credit report. Additionally, closing accounts lowers total available credit thereby causing all remaining balances to become a higher percentage of that total. This may lower credit scores. Manage credit responsiblyA person with no credit cards has an unproven track record and is, therefore, considered to be a higher risk than someone who has managed credit cards responsibly. Rate shop in a short periodSeveral new credit report inquiries within a short period of time are scored as comparison shopping for one new account, as opposed to multiple new accounts, and will not lower credit scores significantly. Seek outside assistanceIf overwhelmed, consider working with PHOS staff or a credit counseling service . A credit counseling service can negotiate lower interest rates and assist in setting up a payment plan. Contrary to popular belief, credit counseling does not negatively affect credit scores. |